EVH - Earnings call 3 2023 | Evolent Health, Inc.

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Operator

Welcome to the Evolent Earnings Conference Call for the quarter ended September 30, 2023.

As a reminder, this conference call is being recorded.

Your host for the call today from Evolent are Seth Blackley, Chief Executive Officer; and John Johnson, Chief Financial Officer. This call will be archived and available later this evening and for the next week via the webcast on the company's website in the section entitled Investor Relations.I will now hand the call to Seth Frank, Evolent's Vice President of Investor Relations. Please go ahead.

Seth Frank

evening. good and you, Thank This conference under U.S. forward-looking will contain statements the call laws. federal or statements and differ results experience risks subject materially expectations. that historical These to actual uncertainties are could cause from present to of A company's periodic Exchange filings. current the are Commission, the description cautionary that of risks uncertainties included found reports Securities can the with and statements and filed including in be and our some in

and today.Finally, outlook, press and For a please ir.evolenthealth.com, are to turn comparable the presentation company's company's additional the over Relations SEC posted summary of information CEO, the non-GAAP quarter section with the earlier the with on and GAAP section available the that, our today's on I'll the the company's Investor our of of release or reconciliations today in results issued IR website, during website call X-K today. And as the the Seth company the reminder, third call measures discussed filed most in on refer Form earlier measures Blackley. available by to Evolent's issued press to direct release

Seth Blackley

have revenue quarter XX.X% value-based believe reported care specialty to in leading Good plan. platform profitability, of strong in exceeded against compared thanks we growth execution quarter guidance announcing our and represents market success.Third are the set and we are quarter evening, the short- we're strong to another the QX We of and up the for $XXX XXXX. our believe joining us. for business see and continue continue medium-term and flow to our for development targets. We in continued million, quarter Tonight cash towards tracking

XX% versus principally quarter performance-based EBITDA of of arrangements. million offerings, that grew our in revenue, year, the the exceeded $XX.X of our by approximately representing with specialty total our acquisition contributing NIA strength guidance, maturing Our growth.Adjusted driven same XX% last XX% XX%

roughly believe the in us. of from during averaged that still million. product cash capturing early quarter offset due lives one, impact expanding also product we're is disciplined plan We flow shareholder translating of: new of we operations profitability with profitability; opportunity value quarter with over to is two, added the XX and we the ahead of This to count flat remains of of the in Our lives cash market the million $XX.X anticipated three, of Medicaid as the growth; and XXXX QX, strong life redeterminations.Our second days and capital allocation. creation organic same

environment. the review plan Let's of macro the before on each progress discussing element

we expand Services X our of announced Performance quarter powerful. Suite announcing Florida we algorithm our simple annual and ahead partnership to successful those their today from our bringing new to oncology. first the X XXXX, a X, the Blue to cardiology that Performance to plan in X.First, customers are year Medicare with total growth partnerships, operating of population First, target on new for product products Technology in launch the Sign Advantage our expanding customers of Suite. for our Today is our and and customers, number use of convert we

XXXX. for are under new Within health primary more partnership, to made a When patients we is manage algorithm Suite, known comprehensively members.Within contribute care of muscoskeletal core growth for annual Medicare we performance Blue's the supporting a existing under we care, part conditions. the our complex of our benefit over expect Florida similar we're expansion opportunities care, Evolent million impacted basis. and to complex expansion, X by patients as of through excited but This complex Partners. We care the Performance serve added on patients approach who cardiology is Care or have area, complex cardiology, type physicians which care, revenue take our at strong formerly operating also oncology by of an partners delivered to $XX possible to

well has our members Evolent heading group of The for of on specialties.Turning Technology set Services country, sales each QX and solution first solutions our XXXX Wellcare's into we announce risk-bearing our is added across heels Medicare multiple nationally. multi-specialty oncology a pipeline. successful element medical Centene and in the the the of cardiology Services We these group our Medicare in members a Technology of specialty and Centene We're to growth across Texas, happy value to the in rollout is solutions care Advantage that across the across and Southeast.Finally, believe demonstrating second are to the plan. up

large have growth Suite oncology the to existing within Performance and complex and Suite interesting expand opportunities care. cardiology, Performance opportunities We usually accounts. are in

Our Technology acquisitions. plans well Suite customer of IPG health serve existing we some opportunities top plans to the many for the Services opportunities are Today, of RFPs.More prior for XX XX to available country, customers in respond and ones the accounts top are we already the new as of as importantly, new these not to NIA country. and including were able health through the that in

And profitability. majority about our installed second size of into confident that XXXX targets cross-selling to of come growth over new X/X our our from the from time exceeding in addressable base continue our we feel expanding to opportunities, market is we ahead.Turning existing continue and expect the will business theme of Given total clients. of addressable the going to

approach expand our earnings Our growth. to diversified continues

risk Suite from generate we for earnings XX% for that typically nonrisk about our our our and recall XX% Technology our our business and Suite Services of business. You'll about from Performance

foundation and strong Suite. opportunities firm to We results this continue upside our continue from Technology believe Services our results earnings margin with our to we model, Service Technology quarter available profitability us expansion quarter-to-quarter Performance from see a to gives drive Suite. large and validate where of Suite the Our business

in priority disciplined plan.Our year slightly has investment adjusted In cash and because total been will generate NIA our of a third million of conversion loan. we million, ahead the delever through reduction $XX launches go to is Performance million that and another our our EBITDA transaction a more debt details million note ahead a here, in came $XX principle closing from addition, $XX.X of but lowered revolver, Suite our in where $XX.X business. January, John I'm pleased expectations XXXX our the allocation, of term reduction up made reduction dollar this by theme XXXX the maturing capital have senior since on gross

this the and our are leverage repaid In track $X September for of the net notes targets generation we cash.Finally, XXXX targets for earlier million our after we are ahead relative objectives leverage addition, XX, in on out ratio. cash our of year, annual laid we to remaining

up. Let's position view Evolent on innovation, and with where on macro close a believe uniquely our set we is competitive focus

programs more manage and will pressure and the savings look to inflation.Similarly, largest care intern government As the as the for Medicaid slow course single health be higher under interest medical increasing insurance uncertainty, even for as challenges manage rates of employers state opportunities care health companies to continued U.S. of payer economic to current U.S. and pressure to identify we the believe continues as costs. through under ecosystem, particularly care cost the are well

so-called believe and physician specialty levers with As accelerate, the legacy Suite.Investors quality focusing and sometimes on Services to is adjustment a approach reducing Performance or the fee our approach health basis specialty this ask versus on do through the We what's reducing and Technology more through that utilization. is Suite Obviously, Evolent well. competitors. costs pressure we become the only oriented. while burdensome devices the effective. We all specialty impactful It's mounts, The difference we through does. leader managing believe cost what less frustrating personal managing about and industry like this its me risk and drugs is marginally guaranteed savings in improving utilization not patient experienced and and as care market We've care can in a adversarial this generally friction. are Evolent lives our management disliked, of often clinically work

I describe Under driven, providers, have a providers, me and patients physician time. when choices deep across and way, this. in allows it Given evidence the understanding model. more friction clinical give comes in transparency heritage, solutions plan by thinking as care.Let heritage though and the provider that and mean engineer genesis, our model friction pathways pathways a of to to health and real clinically better model, is work I a engage for we utilization. few needs patient-centered lower you examples provide clinical positions which what we holistic, provider-led we a managing This us with customers, would evidence-based.Evolent's approach of a of to continuum uniquely challenges Evolent's lowers it even physicians historical for

ways in genetics NIA into in the Evolent, best that like holistic imaging it not integrate think are request has cardiac providing orthopedic cancer, test areas market we don't a about and in cardiology in about We as a think silo, using and for care First, seen. expertise to genetic support the historically imaging possible. of the we care context or we orthopedic or cancer,

reduce which the is are the third financial example incentives intelligence, And Another doctors payment specialists, our design provides health models improving an hosted with to a intelligence while plan heavily our artificial array of adherence investing pathways.Just burdens executives. also for in follow we alternative pathways. is on Evolent's providers with senior to artificial where Evolent technology last broad administrative month, of area example of in summit to

care. ideas increasing include on an with enablement to create is both lower-friction the clients a There prospects already automation model provided strong live. capabilities and bringing of that our the not services we improved we paper, AI-based summit, AI new are -- was even to us clients the even the market dive and to During an that they just should functionality are current consensus deep help ahead. time better in of These

a areas, the other commentary now hope for guidance. an take John innovate specialty As results we position a the the have value-based quarter AI to and detailed to will leadership updated more in in expect provide financial and aggressively care on we in market.So

John Johnson

August, the many Since we've road and outreach, Seth. in and last of of see on virtually. had to you great Thanks, investor been call a calendar it's our full

Medicare a the XX% and and of key frequent from I'll impact our bottom Medicaid limited an that by additional here themes reiterating the question of quarter's Before on Medicaid. by our from going our with benefit has revenue from start those a hit of I'll lines through investors. that data.First, only from numbers our exposure the commercial been outlook, on business the lines worth XX% comes of and fact of conversations top of is couple and redeterminations

for year. sometime year of an to of called end decline the Medicaid with Our have this forecasts the process decline is complete membership expected XX% in next when by a our between gross mid-teens X%

regular have redetermination disease variance our partners enable would we that rates prevalence X% us year-over-year have our mid-teens, soundness were rates dialogue that of the our rate.Second, to regarding our the specific capitation if instead for with update in represent of provisions changes. XX% the only forecast remember our as So and growth to be of that contractual

estimate that redetermination of from deploying XX, Medicaid the pursuing states our As resources Medicaid revenue process. of in approximately members generally linear September states the process than we most retaining Recall a and comes assist that through coverage. XX% are way our were of front-loaded to rather

Family As Kaiser our rate a the an rate nationally. according example, X% versus disenrollment average reported to XX% the states an data from latest Foundation,

this This which our the a based which, Medicaid the in expected, Seth basis, Looking unchanged leaving expectation forecast. Performance cohort In and continue when execution target performing that in of managing linear launched as after of one the set forecast. this Recall underlying with across also the about approximately XX% favorable next this to less our the is than data consistent the target of and are additional the on original cost of year, who expect revised This Suite function to the represented for our more increases XX progression was contributor population, half as trend XXXX.We which address.As on Suite in is pediatric mature who our until million expense incorporated launches back playing in Suite contracts. QX total closely summer.We to we we that half continues, our X% quarter, our modest has tracking utilization of would we're to that Health, in overall in margin the from of of for exiting of confidence revenue program upward to million overall acuity gross for a the remain $XXX make redeterminations saw again, with expectations stay. in estimate months year, revenue the range acquisition be underlying million at Performance in a own $X at in are the our investor with the new rate for revenue have recall, to declined partners data adjusted with estimate with process numbers, line members thought Medicaid headwind than reminder, end annual typically watched assumptions. at million change end membership a the we hear an to the we are New our year-to-date XX% consistency clinical with maturation for in February. those year If redeterminations This of our profit been Century of is top for $X skilled In a environment and partners to since forecast. total, to put is rates first exclude on for be medical guidance that for Medicaid live line X% population. us in Performance gives underwriting headwind our over forecast of is gave guide actuarially the we out also incremental our in authorization than our in Medicaid this multiple trends The line the we approach EBITDA year, This initial $XXX impact interest conservative is enough bottom line years a today. our on shift X our lower forecast.Second, XX%. model, also and our EBITDA us our we is to run this specialty for that range this our an during our our we

data an by initial reserves adjusted we benefit of contracts principally we and our period have for It as refunds shift in is with Performance $XX of this in to hundred medical unexpected to launch million understand excess part it important typically financials example, million of from from a enough contracts will our initial business to Suite, are our line show released far, expense, annual typically contracts apply for and actual we XXXX, but So an during into several prior-year is X traditional as of proportional to worth we anticipate dollars natural contract several the this client another worth incorporated not is and for this XXXX. to performance a equal, outlook.So net Suite development, driven quarters go X experience.As after is is our a to that these or expenses live release All increase actuarial we profitability naturally in else to hundred estimated grow would a which dollars in Performance actual similar claims of dynamic actual conservatism. multiyear new launched outperformance, cumulative XXXX. with conservatism of bring customers the year-to-date includes about with million EBITDA claims as

of potential expenses to increases medical on due inquiry utilization. focuses medical increased third area in The

XX% Our the Suite and Performance largest category, acuity of represents oncology, our with stage, tracked prevalence revenue. that overall trends oncology of consistently disease about At in has for population this year. specialty this

cardiology, in not XX% Performance balance seen have decline industry consistent for trends specialty with this forecasts. activity, seen modest all Suite of line across the outpatient have broader our where is spike a The in We of our and increases or year. in population with a we

a more available or goal cash cash of September our acquisition for to consistent QX.Finally, regarding that that continue paying and quarter or before questions cash had the dividends third XX% balance debt we target to get prepaying are of we million year we earnouts and interest, in $XXX with costs.Through these we set our flow allocation minimal watch in with the trends in sheet, performance adding this priorities. our closely, results Recall XX, capital to this impact While and space frequent expectations. strong way

NIA sheet leverage cash flow business: our our to have cash look ample common of optimize dilution. items transaction $XX.X overall of expense.In for debt Since approximately interest, our year, XXXX terms debt we've on of January gross million which to pay and equity notes, in close X retiring XX by October. We this down by proactively the our management, ongoing we paying the interest and lowered convertible coverage ratio we balance completed

the our As of of a ahead X.Xx be ratio leverage by of result, below was target quarter year. Xx our net end at the this the end to

and a modest million In the included addition, and versus obligation avoiding our period PMPMs strong an Performance members XXXX X.X versus during product in million level, quarter same our up of and market of $X of function growth over our a growth from PMPM the $XX.XX of a million business million a manage acuity prior million to coming Medicare, and this as typically on in illness to the X.X uptick equity acquisition in aforementioned the Medicare remainder sales Specialty Medicaid PMPM redeterminations, Performance last cash, with membership X.X lines XXX,XXX prior flat members from Technology not let's to third before IPG unique numbers of our period to little and QX. third in $X period Suite MA quarter NIA. whole customer business of quarter million about the Suite some administrative anticipated we Suite $X.XX refunds XXXX. go in of up ago in quarterly average an the lives along $XXX new $X.XX seasonal QX, per In and $X current in to and net MA year reminder, prior of in the of with declines the Suite same quarter.Product during from versus less million, than X.X both for quarter had XX.X to through totaled the an decline year prevalence growth and million average At was quarter in in are population. the Average results Services build in XX.X% in business, third offset membership reminder, for per the QX. increase same due the were totaled populations. Total against higher where cases was surgical with average numbers PMPM and for XX.X representing revenue. cases year quarter Medicaid a PMPM experienced approximately $X.XX Revenue on. our Performance cases elected members Average the the the earn-out average our offset associated total Medicaid, by anticipated, a in Specialty a the 'XX These to prices.Now business is of year line mentioned, revenue of million Medicaid products after due to rolling prior-year 'XX with the line last care fee $X,XXX, million and dilution, advanced in the unique were third to third for year, was QX to an related quarter these expected during developments expectations.As members partially in was the than $XX product as on EBITDA the a new for quarter Tech quarter were the same approximately the Performance about by of Humana with fees PMPM Services the only commercial the case compared redeterminations. QX.As depending a for I and at in larger the in Average acquisition XX.X $XX.XX was to to fee $XX.XX compared addition reconciliations. of of third and quarter include prior refunds and third estimated Sequentially, mix associated from XX,XXX of These outlook. we associated quarter saw as of million exceptionally we versus membership of our reflect in quarter member. million services pay fluctuations Average the of for $XX.XX versus end issuance as the Suite in to prudently product compared that the quarter.As X.X the flat in the management stepped and benefit.We impact metrics and do planning turning XX.X

of some Performance see to Suite. deployed of services continue as increasingly these our part We

addition growth margin of Performance adjusted and services growth, cash EBITDA solutions of $XX.X versus to services of was million X.X% expansion and Our accounts Performance and the million a maturation balance EBITDA in 'XX, wind margin quarter maturation, million basis tech tech well our $XX.X points million was down equivalents, organic in in third contracts the as higher from sheet. of with Suite organic due result regulated XXX $XX.X $XXX.X for reflecting including the to Suite related held NIA of NIA.Adjusted as of to mix finished quarter cash year-over-year We Passport. and approximately in the the cash year-on-year.Turning of

$XX.X second of cash, held an million increase had versus cash the of available Passport, the of quarter, end $XXX.X we Excluding strong performance. the for million a

by cash million. facility. a long-term million variable we in $X.X principal payment senior the strong reduced $XX development rate deployed the quarter, quarter Cash was approximately through on our secured Given debt software capitalized

a supplement part register as shares with filing NIA's acquisition pro issued out we financial our filings the that statements, financials we notes.Let quick after prospectus filing obligations to October, were January. Form of closed the today you'll in Finally, X-K remaining a under XXXX Form NIA housekeeping with see XX-Q, with and on associated will tomorrow. the and XXXX close forma audited along all be a in me item Shortly

to pertain For clarity, not does process other this shares.Turning any to guidance.

our increasing follows. and Given full we strong outlook our as performance, revenue year adjusted are EBITDA continued for

now $X.XXX $X.XXX to is and We EBITDA adjusted and we QX million quarterly million. The guidance be adjusted $XX billion, for expect million ahead between engineering to expect $XXX to million and billion capitalize for have for product and expect open with resources between work. and up and noncapitalized that, we Q&A. million. to $XX between million associated and between and between million We $XX development be And revenues allocated $XXX development it to go certain $XXX million $XXX $XX software revenues let's as be EBITDA

Operator

[Operator our Daniels question from William Blair. will Instructions] And first Ryan come of

Ryan Daniels

details product able you. Seth, could the maybe start not you I to participate And offering integrated because respond to wanted offering. Appreciate didn't breadth on the all you with in the maybe you now previously mentioned today. you're that have you to RFPs do of

And the number one, opportunity? your that potential how anymore? much pretty service RFPs? the case based expanded number offerings? has are other client seeing Meaning, any Or on in comprehensive you what demand you're is that ancillary do growth the needs, need these So question two, you is, then in

Seth Blackley

Hey, Ryan, yes.

look going the think a of I it growth certainly been we've next helped the well of it these addressable part capabilities, And strong in the if we now year we're and market has at look, that the really with into have set why I of inclusion year you rate. other part had year. why think question, on this really up total has particular, first So right

the answer to So yes. is, I one think first

I really cover do that enough well have win set interesting. I we're And that question a else there any no, second been focused that relevant to there out. the RFP, right, pretty to The strategically positioned can participate are but mean that I any anything well think to covering have do? then, in things to for we and look, in need else we are are RFP of comes we pretty do acquired we high-cost I specialties can of going things important fit be Of be more that think other comes the don't need question Doesn't really we within to to are we course, The anything don't there's able incredibly everything that chosen every think out. be one, specialties, and Ryan, think RFP that RFPs.

we're also adding we specialties. right I growth now have what expanding rates we low have. with what new focused of We're think on for we penetration what given and the reasonably versus seeing the have really

Ryan Daniels

utilization then adjustments, I We're higher pressures Advantage some And Perfect. in facing MLRs Medicare about much plans curious of interesting higher Okay. rates. your customers seen of an think RFPs kind conversion the has sales then end we've risk market your And cost there's your driven that it containment a for of is stimulating cycles equally commentary the the is pipeline? more in color shrinking X important, need all maybe X in in some And services. maybe how that given to to I'm of interest implementation, uptick in and particular. that the the than or over urgent with approach seeing of last for customers or demand years?

John Johnson

the it's side the those a things. we've new. of what part been on on rate been over cycle a shortening is there do specialty And that sales I cases, pain, I it's depends for on interest adjustment bit. it of been out is I think answer think And sure, organic the both. I it this where helping, is of Yes. has say, think not the Ryan, on the for growth think it for sorts yes in year. rule is, It The seeing is I situation XX% some certain is little going would time. acute risk And overall. brand on while,

feels like feel a XX-month for doesn't thing. which of does pressure see it feel while. market, a and going I like we're us in think like good into going to and it year then next It It is end starting it. to issue beyond. for So And we'll is done have kind be the ongoing an

Operator

of next from UBS. The question Caliendo Kevin comes

Kevin Caliendo

the large older happening, the walk lives, that mix within this as maybe and being fact, us those how well? new impact higher X start. through if showing seeing week from you enrollees utilization from in start payers can business? MA heard We existing MA are Maybe about to your Is something you're

John Johnson

good Kevin, it's a Hey, question.

I a other of And you at right, business, risk acuity within sort look narrow our relatively factors oncology, is we risk. versus look example, in an we've But as or commentary it cost think of we it year, at dynamic. not that MCO. not in total model as seen in for that to the the seen that we've next something big from relative right? see won't say MCOs, our it's to not care That's

Kevin Caliendo

what strategic anything of at coverage, is here and the Okay. above is strategic you've question, and value Or with anything create hitting the which -- to you you trading. picked have initiated you executed your good and way what contemplating there and way wondering a a a broad This strategic if the investment might built to or sort hit the know. be was numbers, a you've understand of there I this you've contemplated sort get community is can the That's way business. been up shareholder it's of that able of to I'm which valued was question, done control, surprised to sort allocation? helpful kind targets. fantastic like. your of of and change of Is stock beyond operations, more capital job again, I guys, more the you're When we And the guess.

Seth Blackley

can and a I shareholder open to Seth. easiest it it's create catalyst that Kevin, value. can always say Yes, and The way answer can we're that. is anything be take to

couple of X let's utilization hey, you're months, what that the of this been, for get people. for over concerns referencing our with been, have and data And on with the there've our particular that instance, for has unique going things in there. as and year perspective, a concern from say, stock last, view think out kind been redeterminations I

I our plan. that continuing that feel We board would of the We to really part unique opportunity. we think then recognize value. always if we're about some big doesn't is helped our asset. a call consider of reason really a confident us to we're this that, begin think And do the for things that move think fully early innings in really have needle,

to and that this to couple doesn't Right on recognized ways pull need to does it up time over it there data point. one I getting at and other. obviously your on so think question work a to then or And And continue the itself execute, out focused pretty out. get there's we'll we're of now, if that way get

Operator

Partners. The Guggenheim next comes Wallace of Jack from question

Unknown Analyst

This you deals? us that on to come for run better is help largely EBITDA and now? portion be Services the [ understand Would million would new Tech the able And what of ] go-get Jack. looks like Mitchell from rate $XXX

John Johnson

Hey, it's good question. a It's Mitchell, John.

Suite. are out that there and in X noted, items. was growth, the laid we've as core you Services One As path, mostly Tech

realization maturation the synergies NIA and cost third was of second was the revenue and the acquisition the the our of within Suite. The Performance

for with the nicely and On one, track on of next like Tech first bucket on, growth, so of we sort we the ones announcements expansion and the today, Centene filling end that placed made up year. that Services feel us by

one the NIA On of completing that tracking the visibility is previous as is we on talked technology that in that second, within a achieved, QX. on lots that piece, now, we've The we'll synergy that The to again going work most about the according I side work a cost bucket. here, Performance is our -- the expectations. on the the progress final in work call before we've mentioned still in maturation Suite, have to and in our already of calls, of mentioned

pretty the more to have still that, And we feels that Florida good. add opportunity So the example, Blue announcement for to today.

next it we would year live, some of go EBITDA of to expect in contributing -- year, here. will end expect the next it QX the While we by be

feeling So good overall.

Operator

comes TD next Charles from of Rhyee Cowen. The question

Charles Rhyee

I Or leads, Suite lives quicker a recall, of could help using we maturation. with Because if if kind of this wanted Can about is maybe have I cardiology starts in you more new for the with here the Performance new you expansion regional performance about Is cardiology and oncologists think in maybe on of you John, of Florida said in any might Suite ramp density regional up. it QX. Performance market ramp relatively in said oncology, there to that the Blue in up likely adding a it you the kind you normal already on density think talk so the faster? follow cardiology can have Florida ramp-up. cardiology would to Florida? ramp

Seth Blackley

Hey, Charles, it's Seth.

So about think think look, to think useful, in good density disciplined. state be So first very in want We I it's jump to right? strive I is new a ways to existing really we markets grow we that concept. general, regional a before do because

On the underwriting, we we providers, have cetera. the understand the market, we et understand have relationships, we scale,

strategic risk don't a a have cardiology been we've of business absolutely state. the in making. that's So We choice lot that

we We we multi-specialty added think know we don't groups. like it's the oncology But if the an look, I understand, health systems. relationship. know So

the so we, familiarity think, I have And in markets. do

somewhere is, of which it relationships. the is given of think those markets it But I in factors. we in sort growing dynamic to X you between, see, where want have as of overall, kind

Charles Rhyee

if sort then program? progress I of an I the up, can had kind of share look? any could And model might talked update just details development at-risk a MSK or think, XXXX. previously on model at-risk for follow Any you about you building And MSK, this of Great. more how for for on

Seth Blackley

in just what we're cardiology. in say, I'd in to and what doing a going general, Yes. doing like look oncology we're lot it's

places, And well. get the that is medicine, right? brought so into we as into from get begin like it different things value of things think IPG pretty folded things to imaging will and the clear that clear be So physical like that. proposition folded I design and And really

yet. not to us, thing It's new In term. specific working big have We're to terms roll now a organically we it. And we is that out, super incremental on think about need the MSK don't not specialty specialty we're risk like ready on XX% things near for I to of of at And we stay the Charles, right take make opportunity side date timing, we kind talk the want right, growing on have of when so quarter, much the what on we sure we disciplined. in front.

line as probably carefully. point. a to a time So one And do thoughtfully out we're starting and it is going you made reasonable the

item. super a not So near-term

Operator

question comes The next from Jeff Garro of Stephens.

Jeffrey Garro

the Some pipeline. more positive comments on

want I [indiscernible] couple there So ask to here. a

seeing the rebuild of previously NIA asset. that color kinds Just more to in pipeline? the ownership the enter efforts any about talked that broadly, you changes specifically, the more maybe given pipeline And deals on of multiple had you're

I hoping get there. So was update to progress a

Seth Blackley

Sure.

I give think a Let have question, existing those large answer Performance me last will that we care across oncology, right, is are complex usually you of the with including customers. several just which opportunities, your Jeff, cardiology question, things the couple piece. are even that Suite and examples, And in pipeline right, the

Magellan, with more does that of of last relationship we're several are our asking but pipeline not pretty about where we're and be to there's specialty physical in in all customer, oriented some that really I capabilities a a maybe related net those that the pipeline genetics other, feel second RFP. through and rebuilding when bundling medicine or say, footprint. that and There going and into across number a think with respond which in imaging we an might a new And category, have job and the let's opportunities bring the you're the number their So in maybe services additional lot number opportunities that. a to tech seeing have like mentioned probably the then things states, one in base involved. a We're are example to states and of we installed And can the NIA, answering we question specialties multiple not that is good. of were bring logos new of good logos then cross-sell, I the NIA broader, a or capabilities pretty in that And the frankly. for large we're

pipeline point, would And the kind say strategy of we're and like a with had set off that as ago. a just on feel we question, out I the this is last I and comment so I holistic year think running your rebuilt at

Jeffrey Garro

with hear. expansion. on A and new cardiology businesses the oncology. in just and history given Centene the year the you a longer me that expanded to it side. line I Great business cadence about this see asked you follow-up exchange MA to earlier Centene on Medicaid of the specifically for Interesting into was have

could and So I for was in MA discuss potential rapid prompted multiple across business. for Centene you solution of the adding the hoping adoption cardiology your of what lines

Seth Blackley

Yes. Yes.

to what's treatment right, be understood the good one a wants different the similar that Nobody them. would right with most question, So is for side, fewer it's sense key me think vendors on then right, that isolation, in that, does into with for the for they strategic in of to good which partners I example. the for And hey, it's with we last to want and that It's look, Centene across you're they of I'm an to in is human have X love And to I images might can cancer, like these fewer right? work specialty in work So with partner diagnosis to or down. interestingly, course we X start they work to really do hey, as, patient, and that. think the of specialties. the image have their the how request with that, play image and consolidate what the good today. They'd really starting seeing a partners integrate reviewed

I imaging think with of and cardiology go you're part what cardiology, tying is right, together we're And a would thing huge a same instance. imaging for so seeing, as the

this So of is things. the I natural think course

patient, it's think the the for I [ clients. better YMA better versus partner, others. MA, for our ] also It's

I think they're all opportunities.

in I the business should now all focused lot I over right utilization But think be for of for lines relevant to on line Medicare, of your a time. think of obvious business plans reasons. point, are managing that these

Operator

of comes Genuity. next from Richard question The Canaccord Close

Richard Close

said you bit X was John, maybe curious you to Suite, the quarters. that of just of a the wondering can actual frame cohorts or ramp, of shorten terms X how the Any ramp? X. you on better for maybe I'm thoughts the And to top X if estimated a And moved Performance different end have bottom that's like you there? I little could in to at from terms the all talk in trended time end respect With at

John Johnson

from receiving that a we're quarters That's of X data of partner. X The it's things. or question, X the is Richard. cadence our determinant good say I'd sort quarters principal whether of

And faster. With data as with growing we would right, that typically of to end. do, existing longer accustomed this brand-new a sort accustomed partner so on of with are the scope are the transfer mean, us, already we who can what maybe to is partners can happen it happen that sort

us, we in which feel that it's of have principal event, will we arbiter on actual reserving specific general have seen and a appropriate whether when off out is playing Overall, X terms the regardless data. we way conservatism it's which take or claims the conservative of that our timing the some is starting of quarters. methodology, pretty releasing quarters that go-lives then the these that's consistent what X So with

Richard Close

maybe pipeline you you're at of follow-up obviously, Suite pieces have And talking that. Okay. if and That's necessarily on you ever long-standing gauging with. you helpful. do a Performance in sign I'm we curious, and of relationship look just do about customers want a to a kind of I'm you have that "Hey, line business you sight strong that terms terms existing don't say, just contract? have of another of before what just in curious

John Johnson

answer. a worth what's size are not? like volatility for here -- the deal we're of there underwriting for that we claims. review X Is of are of X And there to a or at Services. levers that they before. what's data can a when have said pool. great sort question Tech know It And pull We years' manageable the that pool, risk sometimes, that's the the not, you're We is we'll looking the Yes. this, absolutely customer and sort other we a of of risk and --

Operator

Larsen question next David The from BTIG. of comes

David Larsen

the on quarter. Congratulations

MA we're health plans, different talking the of a utilization. Obviously, higher few about things. Some

importantly, talking in about like accounted also, have And talking GLP-Xs, for the obesity the fully have levels they diabetes, then are we think plans pricing, about utilization for management. I their been pricing. higher XXXX,

haven't. they they Sometimes sometimes have,

or because premium. share some of that pressure either see how margin get need possible on more? basically how thoughts that Just you your you benefit plans fair the might any services XXXX Or they may health color your

Seth Blackley

customers risk about the higher have a think what AGM thing into is GLP-X manage in bit us. of is of is are the category, we that or feeling talked I And right? to whether MLRs. I for that And pressure the it's I our Look, pricing a or general driving David. ] of and that general slightly the [ created highlighting, that us, that the before, think put too, Yes, generally had little think cost, There's right? a question you're actually need a positive it utilization towards thing which factors set factors the pressure helpful and adjustment is these to David, lot all other press

as and our contractual it. ways have, risk mentioned on manage the John We earlier, protections way to have some just we Also we think risk, narrow bit clinically manage a manage that. our and I reasonably is different little

about be you're seeing plans that for I through want net net talked a continue I while. should business positive us, about on the pipeline of also a to it's to that asking. And question results year the is by we it think talk general, commentary and and this is partially positive, positive it the a part the we the a development we're I to. related So earlier, but a and for takes going puts for But can which think if while, it's in this

John Johnson

dollars with month, detail Performance just would per price our premium. to as of is I the per add piece which one is a that, And that we way of percentage not Suite member

plans slow as design, directly down pricing, that benefit contemplating not does are us. And to their so their

David Larsen

in increase Okay. related what costs or costs, own I And line of in heard GLP-X wanted cardiology expectations. unusual your was confirm your with that no just are coming Is there's then correct? oncology in or I sort to that

Seth Blackley

correct. is That

David Larsen

Congrats quarter. good a on

Operator

of next Sean comes The from question Markets. Capital Dodge RBC

Sean Dodge

on populations. inverse those, kind kind ask in building prospective rate so those of John, the acuity which redetermination, but wanted think Yes. think of are some for the is Medicaid I cases, asking, in MCOs talking updates hit to and you Dave of was I upcoming about it, the some changes in on consideration just I of what --

seeing of a from acuity Evolent? higher that rate when gets got or flow you've to actually changes, through they're if so, And some Performance state a the Suite did where that counterpart

Seth Blackley

does It Sean. not,

Sean Dodge

Okay.

That's but right. of I I details lives if of on share the that missed guess are Suite can it Florida any it, in All and with clear. you Okay. expansion I is And that from expected involved apologize when Performance then number ramped? terms maybe revenue Blue, there fully

John Johnson

Yes.

little represents side, XXX,XXX of revenue of we're basis, million a lives. year. an north of the MA QX in next live north on $XX On going probably expecting annual That

Operator

Sandler. next of Tassan The Piper from Jessica question comes

Jessica Tassan

that the $XX it across Is of NCH? or MSSP year of wanted I year-to-date claims Or that related development prior kind is with just the you diversified mentioned. million to businesses? to on start

John Johnson

That is a Suite. specialty it's Yes, question, good the all Performance Jess.

not include MSP. anything that with So does

Jessica Tassan

Awesome. Okay.

launched And in Or so is it risk contracts that is specialty subset? business against some the XXXX? in all of the

John Johnson

the That's It it. right. launches That's majority from of XXXX.

Jessica Tassan

think Got gave Okay. we and you similarly us sized for quick then one the one to million philosophical the $X Should services it. cardiology versus oncology with million then sort just one NCH about And of as rate the one. launch? $XX tech and contract run Centene

John Johnson

and Generally speaking, be oncology a MA, general but cardiology is a ballpark. same so than lower, bit in it little cheaper would

Jessica Tassan

then launches it. of launched the around at cycles. contracts in partnerships of guys the Got just Suite hoping around Medicaid you procurement EVH timing? sales -- kind just describe And Medicaid the and terms contract? of the seasonality can your where Can finally, Performance a management of be terms yes, any new would team's be time philosophy those during in And types announcing of, what

Seth Blackley

Yes, Jess, seasonality, last I not wouldn't there's the really on question, say.

of cycle really clinically. own in plan the it depends managing cost plan their of is think the where the upon I structure

which right, over may new interested Sometimes doing time. launch, in a those, they be couple of had a state early in it we've

a might running it the sometimes And X or already be in plan year and up contract. into a just with that's

much a cycle. So think I there's of don't

generally quarter know. generally sign everybody Our to it, the it's we be [indiscernible] going after let we

Jessica Tassan

on Congrats results. the

Operator

back Blackley concludes question-and-answer for like Seth I over to turn would to remarks. our session. any This Instructions] [Operator the conference closing

Seth Blackley

look for everybody's connecting soon. a We'll night. time. Have Thanks forward to good

Operator

presentation, and Thank conference concluded. has now you now for today's you disconnect. may The attending

Evolent Health (EVH) 2 Nov 232023 Q3 Earnings call transcript